ACG 2021 Lecture Notes - Lecture 1: Delta Air Lines, Accounting, Limited Liability Company

Brooklyn College – City University of New York

Department of Accounting

Principles of Financial Accounting

Examination of a Corporate Annual Report

Student’s Name ________________________

Please choose a publicly traded company to work on. You mayselect a company whose securities are traded on the NYSE, AMEX orNASDAQ. Please do not select a company that is a financialinstitution or services company. The company should sellmerchandise.

Part I

1.Fill in some basic informationabout your company.

Name of company_____________McDonalds_________________________

Principal exchange where the company trades_________NYSE______

Market price of the stock _________$119.29_______ as of________December 5, 2016_____ (date)

Annual dividend __________________.94______________________

Last dividend paid on ___________November 29,2016________________________

2.Read the business summaries andmanagement’s discussion and analysis (MD&A). Summarize theremarks (ex. Poor operating results/expansion plans/sale of adivision, etc.)

3.What kinds of products and/orservices does the corporation provide/sell?

4.a . Which accounting/auditing firmaudited the financial statements?

b.Did the auditor’s report indicate anyproblems or exceptions?

5. a. Did you find any new terms within the financial statements?

b. Did you find thepresentation of the financial statements clear? Why or why not?

Part II

Indicate the formula to be used and insert the amounts used incomputing each ratio. Express your answer in suitable units(percentages, decimals etc.)

Current ratio

Quick ratio

Receivable turnover

Average days sales uncollected

Inventory turnover

Profit margin

Return on assets

Return on Equity

Earnings per share

Debt to equity ratio

Dividend yield

Price earnings ratio (use price from question 1 and EPS fromquestion 6-i)